Fleet Management

Fuel Management and Oversight

Local governments can achieve savings on fuel by coordinating fuel access, centralizing tanks, grouping bulk discounts and sharing facilities. Policies such as anti-idling, reduced speed and scheduled maintenance also help entities conserve and reduce fuel usage.

The city estimates saving about 35 hours in monthly labor and overhead costs. City of San Antonio, Texas

Government Fleet magazine recommends local governments evaluate fuel depot sites to determine whether the locations are cost effective or just convenient for users. Fuel mark-ups should be reviewed to determine if these compensate for costs of permitting, upgrading, repairing, and testing the sites. The extent to which the government is earning bulk discounts and whether these offset the operating costs of the fuel site should also be reviewed.

Implementing a program to coordinate and centralize fuel management helps ensure that all fuel purchases are maximizing bulk purchasing discounts. Further, reviewing usage and requiring the most cost-effective practices will reduce unnecessary duplication in the use and management of fuel tanks. Coordinating and communicating between the departments creates opportunities for potential consolidation and efficiency.

Ohio Examples

Anthony Wayne Schools Transportation Department uses technology to track the exact use of fuel for all district vehicles. Each driver uses a card and receipt that sends information back to the department and records use for internal reporting. This detailed data gives accurate information to the department for planning and decision-making purposes. In addition, the district provides fuel to the local Police Department and is able to appropriately record and bill the city for this use based on an exact measurement of use. This provides an efficient system and gives the district and the city the opportunity to take advantage of bulk purchasing discounts. In addition, a fuel purchasing system provides security through electronic authorizations and detailed transactions.

Ohio uses a fuel management system that permits drivers to use fleet fuel credit cards. Drivers must enter mileage and codes into the fuel kiosks in order to activate the cards. This permits the Department of Administrative Services to track purchasing and detail information associated with the use of the card and the vehicle. The fuel cards provide convenience to the drivers, permitting them to purchase fuel at field locations as necessary, but also allow the department to understand and assign fuel purchasing to the appropriate agencies.

National Examples

The City of San Antonio’s Fleet Maintenance and Operations Department reviews fuel, mileage, and maintenance costs and sets criteria to identify underutilized vehicles and equipment with high maintenance costs. The City is already using alternative fuels for 30 trucks and installed an automated fuel management system (AFMS) in late 2009.

The new system uses radio signals that will limit error, fraud, and technological inefficiencies by ensuring accurately reported mileage and fuel inventory. The system also will automatically link to the city’s fleet management system and allow auditing and security features, as well as convenience. The city estimates saving about 35 hours in monthly labor and overhead costs.